Anadarko Reports Significantly Improved Financial Results for 1999 Fourth Quarter and Full Year
Annual Revenues the Highest in Company History
HOUSTON, Jan. 26 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced significantly improved financial results for the 1999 fourth quarter and full year. The improvement is due to the effect of stronger commodity prices for crude oil and natural gas, and record levels of production, which surpassed the company's previously announced targets for the year.
"Stronger commodity markets this year, led by a nearly 50% jump in annual average oil prices, contributed significantly to our positive financial results in 1999," said Robert J. Allison, Jr., Anadarko Chairman and Chief Executive Officer. "The improvement in prices, coupled with increased volumes from Algeria, helped us increase cash flows dramatically." Allison added that 1999's performance is indicative of what lies ahead in 2000 and beyond. "We've spent the last several years building a foundation that should create double-digit production growth and long-term value for our shareholders. They're now beginning to see some real, immediate returns from these projects."
FOURTH QUARTER For the fourth quarter of 1999, Anadarko had net income available to common stockholders of $28.0 million, or 22 cents per share (diluted) on revenues of $223.3 million. By comparison, Anadarko reported a net loss of $56.7 million, or 47 cents per share (diluted), on $135.5 million of revenues for the fourth quarter of 1998. During the fourth quarter of 1999, a non-cash charge of $4 million ($2.6 million after tax) was recorded to impair activity in several international projects. Excluding the impairment, Anadarko's earnings for the quarter were $30.6 million, or 24 cents per share (diluted). During 1998's fourth quarter, the company recorded a non-cash charge of $70 million before taxes ($45 million after taxes) to impair certain foreign exploration activity. Excluding the foreign impairment, Anadarko's net loss for the fourth quarter of 1998 was $12.1 million, or 10 cents per share (diluted).
ANNUAL For the year ending December 31, 1999, Anadarko reported net income available to common stockholders of $31.7 million, or 25 cents per share (diluted) on revenues of $701.1 million. This compares to a net loss of $49.3 million, or 41 cents per share (diluted), on revenues of $560.2 million for 1998.
The 1999 results included non-cash charges of $24 million ($15.4 million after tax) related to impairments for exploration efforts in Eritrea and other international locations. Excluding the impairments, Anadarko had net income of $47.0 million, or 37 cents per share (diluted), in 1999. For 1998, Anadarko's net loss, excluding the foreign impairment, was $4.7 million, or four cents per share (diluted).
The higher revenues and earnings in 1999, compared to 1998, were the result of significant improvement in oil and gas prices and an increase in Algeria oil production. Net income for 1999 also reflects lower operating expenses, offset partly by higher DD&A expense, administrative and general expense, interest expense and preferred stock dividends, compared to 1998.
In its 1999 operating results, released January 26, 2000, Anadarko reported production of 49.5 million energy equivalent barrels (MMEEBs) -- the highest in company history and a 5% increase over 1998 volumes. A modest decline in U.S. production volumes was more than offset by higher oil production volumes from Algeria, which totaled 6.2 MMBbls (net) in 1999, compared to 1.4 MMBbls (net) in 1998.
In addition, proved reserves on December 31, 1999, totaled 991.0 MMEEBs, compared to 935.1 MMEEBs at year-end 1998. For the 18th consecutive year, the company more than replaced annual production with proved reserves. |
